Assume consumption is represented by the following function: C=400+0.75Y. Also assume that planned investment (I) equals 100 and there are no government or taxes.

Q: The Based on the following equations Saving (S)= 0.2Y Investment(1)= - 30r + 740, Money Supply(Ms)=…

A: The simple investment multiplier is the ratio of the change in aggregate output to the change in…

Q: Problem : Given the saving function S (i) Find the level of consumption (ii) If investment decreases…

A: Saving function S= -10 + 0.2Y Autonomous investment = 50 crore

Q: Which of the following transactions are counted towards investment (1)? A private university…

A: Investment is the act of depositing money to start or expand the business or project with the…

Q: QUESTION 8 As a result of entering the world economy, Neverland experiences economic boom and its…

A: *SOLUTION :- 8)   The answer is = 77.5

Q: Which of the following statements is​ correct? A)Actual investment equals planned investment when…

A: Unplanned inventories: - Unplanned inventory is the increase in the inventory investment over the…

Q: Calculate the value of Consumption when average propensity to consume is 0.7 and the income is 700…

A: # The ratio of consumption expenditure to total income of the household gives average propensity to…

Q: The slope of the consumption function is positive and equals 1-MPC True False

A: A consumption function shows the relationship between desired consumption expenditure and desired…

Q: Y-2VF-8 VY+2 Suppose the savings function of a country is S = and savings (S) are measured in…

A: Marginal propensity to save (MPS) refers to the proportion of a pay raise that a consumer saves…

Q: An economy's consumption

A: Saving refers to the portion of disposable income that is not spent on consumption. It represents…

Q: The table gives disposable income (DI), consumption (C), and savings (S) data for the country of…

A: Disposable income is the income available with the household sector for the consumption purpose. The…

Q: Disposable Consumption income expenditure (€, thousands) (€, thousands) 200 220 300 300 400 380 500…

A: Disposable income refers to the income of households that is used to consume goods and services, and…

Q: Make a graph based off the following: Construct a consumption function from the data given here and…

A: Answer: Graphical presentation of the consumption function: According to the above figure, the…

Q: E(p1, p2,U)-UP₁ is a valid expenditure function. O True O False

A: An expenditure function represents the total amount of money a consumer spends on goods and services…

Q: what is held constant along the consumption function.

A: The only part is constant in the consumption function is autonomous consumption which is…

Q: QUESTION 9 As a result of entering the world economy, Neverland experiences economic boom and its…

A: An economy's current account maintains track of its foreign dealings with the rest of the world. All…

Q: Calculate autonomous spending with the given info C = 400 + 0.6Y

A: Consumption function consists of three variable: 1-Autonomous consumption(C0): Consumption when…

Q: (M: 10,000 Government Spending (G): 1,500 Desired Consumption (C): 8,500 If the goods market is in…

A: here we calculate the desired level of investment in a closed economy by using the given information…

Q: a) With the aid of a consumption function, highlight the main determinants of consumption.

A: The relationship between the spending of consumer and it's determinants which effects this describes…

Q: Assume:     Yd  = $ 5000 billion      b = .95      a = $ 520 billion A)What is consumption (C) ?…

A: The consumption function, often referred to as the Kanezian consumption function, is an economic…

Q: Between Foreign Direct Investment (net inflows %) and Real GDP Growth ( %): A. Identify the…

A: Foreign direct investment ( net inflow% ) is the investment made by foreign firms or people in the…

Q: The investment function is I = 3-10i. What is investment when the interest rate i is equal to 0.10 =…

A: Given:  Investment Function : I=3-10i Interest Rate = 10% Government Spending : G

Q: when

A: Answer

Q: Please round to 2 decimal places

A: The formula used to calculate Aggregate Expenditure (AE) is derived from the equation AE=C+I, where…

Q: Let aggregate national income be given by Yt = Ct + It + Gt Where C, I and G are consumption,…

A: The national income is given by The consumption rate is given as The investment equation is given as…

Q: Calculate business investment for the following data: Y = 55,000 C = 40,000 G= 5,000 NX=  - 2000…

A: Aggregate expenditure is the sum of consumption, investment, government spending, and net exports.…

Q: Find the value of average propensity to save when the personal disposable income is 1200 billion and…

A:

Q: In Hong Kong as in much of the world, National Income and GDP data are revised from time to time as…

A: Answer: Part (a). If consumer bought $8 billion more furniture than previously thought then the…

Q: What could increase autonomous consumption (Ca)?     a) An increase in the products price level.…

A: The level of autonomous consumption can shift in response to events that limit or eliminate sources…

Q: # Calculate MPC when it is given that the value of MPS Is 0.66

A: # We know that when we do the summation of MPS and MPC we always get 1  That is:- MPS + MPC = 1

Q: If disposable income is $ 1000 and consumption expenditure is $ 750, find out APS.

A: Disposable income = 1000 dollars Consumption expenditure = $750

Q: Construct a consumption function from the data given here and determine the MPC.

A: In the Keynesian economics analysis, the equilibrium output level refers to that output level where…

Q: Disposable income Consumption (dollars) expenditure (dollars) 0 100 300 500 700 900 In the above…

A: Savings, disposable income, and consumption are all interconnected concepts in economics. The…

Q: If the personal disposable income is 400 and the consumption expenditure is 320 find out the average…

A: As per the question, Generally the personal disposal income is = 400 CONSUMPTION EXPENDITURE = 320…

Q: n a simple frugal economy the consumption function is C = 200 + 0.8Y, and exogenous desired…

A: Aggregate expenditure is a sum of consumption spending and investment spending

Q: 14. Calculate Equilibrium GDP (Y*) in each of the following situations (IP is Autonomous Planned…

A: Equilibroum GDP is the level of economic output at which total planned spending in an economy equals…

Q: 50 cores CO sumption

A: Equilibrium,  Saving function = Investment function

Q: The following consumption function of an economy is given3; 40+0.8Y where Y is national income If…

A: Solution is given:

Q: Q = 1,200 – 9.5p + 16.2p, +0.2Y, ere Q is the quantity of coconut oil demanded in thousands of…

A: Price elasticity of demand is a measure of the change in the quantity purchased of a product in…

Q: Assume that the long-run level of output is Y=1000Y=1000, which the economy is also at initially in…

A: Assume that the long-run level of output is Y=1000Y=1000, which the economy is also at initially in…

Q: Suppose GDP in this country is $2,250 million. Enter the amount for investment. National Income…

A: A budget deficit takes place when expenditure exceeds its revenue at some stage in a particular…

Q: Planned spending is as follows: C = 600 + 0.7(Y – T) – 200r, IP = 200 – 500r, G = 200, NX = 10 and T…

A: Answer: PAE (planned aggregate expenditure) is a sum of consumption spending, investment spending,…

Q: Given that the C = 600 + 0.1Y and Y = 8000 find the level of the consumption

A: